Opendoor Technologies Inc. (NASDAQ:OPEN) Just Reported And Analysts Have Been Lifting Their Price Targets

There's been a notable change in appetite for Opendoor Technologies Inc. (NASDAQ:OPEN) shares in the week since its quarterly report, with the stock down 14% to US$6.56. The results don't look great, especially considering that statutory losses grew 68% toUS$0.12 per share. Revenues of US$915m did beat expectations by 3.7%, but it looks like a bit of a cold comfort. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the consensus from Opendoor Technologies' nine analysts is for revenues of US$4.23b in 2026, which would reflect an uncomfortable 10% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 26% to US$0.30. Before this earnings announcement, the analysts had been modelling revenues of US$4.25b and losses of US$0.38 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.

View our latest analysis for Opendoor Technologies

The average price target rose 65% to US$1.89, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Opendoor Technologies, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$0.70 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's the idea that Opendoor Technologies' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 8.4% to the end of 2026. This tops off a historical decline of 0.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So while a broad number of companies are forecast to grow, unfortunately Opendoor Technologies is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Opendoor Technologies' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Opendoor Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Opendoor Technologies going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Opendoor Technologies has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.